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RMB- Private Equity invests $10mn in Lizer Cylinders

Lizer Cylinders Limited today announced participation by South Africa based Rand Merchant Bank’s (RMB) private equity arm, FirstRand (Ireland) PLC, a leading foreign private equity investor. RMB is advised by Rosewood Investment Advisor Pvt. Ltd in India.Lizer is promoted by Mr. Ashok Ramsinghani who has extensive business experience of over 30 years in diverse industries. Mr. Vishal Ramsinghani – Managing Director, a business graduate from USA manages the day to day operations. Commenting on the participation, Mr. Vishal Ramsinghani said, “We are happy to have RMB Private Equity as financial partner, which would help us in achieving faster growth. The RMB – Private Equity has invested INR 400 Million (US $ 10 Million) in Lizer Cylinders. The fund raised will be utilized to further expand the Company’s manufacturing capacity from current level of 200,000 to 400,000 CNG Cylinders per annum.” [...]

Morgan Stanley to Set Up Private Equity Unit in India

Morgan Stanley, the second-biggest U.S. securities firm, will set up a private equity unit in India from May 1, the company said in an e-mailed statement today. The New York-based company also said it has hired Aluri Srinivasa Rao from ICICI Venture, a unit of ICICI Bank Ltd. and India's largest private equity fund, as a managing director. Rao, 43, will run the group's private equity investments in India, the statement said. “We are excited to be entering the India market,'' Chin Chou, managing director and chief executive officer of Morgan Stanley Private Equity Asia, said in the statement. This year presents one of the most attractive times to be investing capital in India, he said. Morgan Stanley's private equity unit will invest in India through its third fund dedicated to Asia, which manages $1.5 billion, the company said. (Bloomberg) [...]

IDFC raising $700 million India fund

Indian infrastructure specialist IDFC Private Equity is raising a new $700 million fund to buy stakes in firms expected to thrive as the country modernises its rag-tag power and transport networks. IDFC's managing director for investment, Satish Mandhana, told Reuters the fund would close in the next two to three weeks, with around 85 percent of the money coming from abroad. Foreign investors are increasingly drawn to Indian infrastructure, as the government estimates about $500 billion will be needed to build new roads, ports, airports and power plants by 2012 to keep pace with a fast-growing economy. Around 30 percent of that spending is expected to come from the private sector, with the rest split between the central and state governments. [...]

Is realty seeing a correction at last?

The unending euphoria over real estate, which India has been witnessing over the past few years, is finally starting to show signs of ebbing, and that is probably healthy news for the long-term growth of this sector. Collapse of a few recent PE deals, postponement of capital-raising plans by developers and poor response to government land auctions are indicators of the “expected slowdown” in Indian real estate chapter. Recalling the success story of a few years ago when home loan rates sank to 7.5%, it resulted in huge demand for quality real estate and paved the way for the spiking in property rates in many cities. Since then this industry displayed an unstoppable upward curve. However, today, with interest rates already very high with negligible scope of reduction due to inflationary pressures, the real estate momentum would not be the same. Signs of a slowdown have started becoming visible in the residential sector. There has already been a marginal decline in rental and capital values of apartments across a few micro markets and the trend will only gain momentum as we move ahead, especially in peripheral and suburban locations where significant supply is in the pipeline. Even the office market has not escaped. It has witnessed stagnancy in rentals in majority of locations in Q1 2008. [...]